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ARRA "Involuntary Termination"
Benefits & Compensation
ARRA "Involuntary Termination"
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
Are you sending notices of the COBRA subsidy to individuals who were terminated for misconduct such as standard policy violations? I really find it hard to believe the subsidy was intended for these i
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Forums » Topic Forums » Benefits & Compensation » ARRA "Involuntary Termination"
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ARRA "Involuntary Termination"
posted at 3/19/2009 12:05 PM EDT
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Posts: 62
First: 9/13/2005 Last: 11/19/2010 |
Are you sending notices of the COBRA subsidy to individuals who were terminated for misconduct such as standard policy violations? I really find it hard to believe the subsidy was intended for these individuals but am feeling constrained by the "involuntary termination" language without further guidance. Thoughts? |
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ARRA "Involuntary Termination"
posted at 3/20/2009 7:21 AM EDT
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Posts: 1047
First: 4/11/2002 Last: 9/14/2011 |
You don't have to if an employee was terminated for "gross misconduct", however, most employers still do to err on the side of caution. "Gross" is going to be quite a bit above and beyond than regular misconduct. For example, firing someone for insubordination can be classified as misconduct, but not gross. Setting your boss' office on fire, well that can be classified as gross misconduct. |
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ARRA "Involuntary Termination"
posted at 3/27/2009 2:14 PM EDT
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Posts: 1
First: 3/27/2009 Last: 3/27/2009 |
Talk about rewarding bad behavior! ...another poorly worded law. It should have read "due to reduction in force". We're a strong company with no need for RIFs but now we have to "reward" employee's termed for violation of policy or poor performance! |
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ARRA "Involuntary Termination"
posted at 3/29/2009 6:09 AM EDT
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Posts: 1771
First: 10/24/2002 Last: 9/14/2011 |
I just had a phone call with a US benefits consultant yesterday and she told me that the only people you don't send COBRA/ARRA notices to are those fired for gross misconduct, and that "gross misconduct" generally means that the fired employee did something that you could press charges for. |
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ARRA "Involuntary Termination"
posted at 5/7/2009 9:40 AM EDT
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Posts: 1
First: 5/7/2009 Last: 5/7/2009 |
From what we have been advised, employers can exempt "gross misconduct" as part of the "involuntarily terminated" definition. However, not many of our involuntarily terminated employees are termed for gross misconduct. We've taken it that we're stuck with paying on most involuntary terms, even though it defies logic to provide this benefit to a former employee who was a poor performer, had attendance issues, etc. |
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ARRA "Involuntary Termination"
posted at 5/7/2009 12:31 PM EDT
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Posts: 2442
First: 2/12/2000 Last: 9/14/2011 |
It does not really defy logic. You made a hiring mistake. The person you hired had the right to join your health plan which means that you are obligated to provide COBRA coverage when they leave. Your government then passed a bill that says that you have to give them a reduced rate for a period of time but you can take a credit against your taxes for this credit. so not much net cost to you.
Ok so there is some admin involved but that is the price you have for having a qualified plan for the balance of your folks. |
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